A Step by Step Plan For Beginners For Online Forex Trading Platforms

FxBrokerReviews.org – The forex or foreign exchange market is the largest and the most popular market for buying and selling foreign currencies. It is a decentralized market, which means that there is no central or physical location for the  trading of foreign currencies, all the transactions are conducted electronically over the counter (OTC), through devices and a network connection. 

Online forex trading market is open 24 hours a day and 5 days a week  in different parts of the world. Trading begins from 5 p.m. EST on Sunday until 4 p.m. EST on Friday. The forex market does not only include a single market but the exchange takes place between forex brokers that are spread all across the world.  The international forex trading times depend on when the forex market opens in different time zones. London and New York are said to be the busiest time zones in the forex market. 

If you are someone who is new to online forex and CFDs trading then, it is very  important for you to register yourself with a forex broker. There are numerous online trading platforms for beginners that can help you start with trading. 

Below we have compiled a complete guide on all that you need to know about forex trading, CFDs trading and the best forex brokers in the market. Read on!

What is the forex market? 

The forex market or the foreign exchange market is the place where the trade of currency takes place. The foreign exchange market is made up of two levels—the interbank market and the over-the-counter (OTC) market. 

The interbank market is the place  where large banks trade currencies for balance sheet adjustments, hedging, and more. The banks undertake these activities on behalf of the clients. Whereas the OTC market is a place where individuals and beginner traders  trade through online platforms and forex brokers.

Definition of a forex broker 

A forex broker is a financial service company that provides a platform to traders to buy and sell foreign currencies. A forex broker helps the traders to speculate the trade as well as help in making profitable trade decisions. Most of the online forex trading platforms have numerous tools and features that provide aid to analyze the volatility of the market. Moreover, for beginners they have several educational resources like tutorials, news and guides to introduce them to the styles of trading.

What are the benefits of online forex trading 

If you are confused about whether you should invest in the foreign exchange market or not, we at forex broker reviews have assembled a list of all the benefits of a forex trade. The list might just help you make a profitable decision. 

  1. The forex market is the most liquid market with an average trading value of around $6.6 billion or more.Note : the term liquidity means that it is easy for a currency pair to be bought or sold in the market due to high trading activity for that pair. In the forex market the flow of transactions is easy along with a competitive price.
  2. The forex market is open 24 hours a day and you can carry out traders from anywhere at any time. All you need is a forex broker.
  3. The market is regulated and completely legit. Aside from the market risks, it is completely safe to buy and sell currencies in the forex market.
  4. While trading in the spot market there are no clearing fees, no government taxes and no exchange fee. The only way a forex broker makes money is through the spread or bid which is always transparent to the users.
  5. A forex broker may provide you with various educational tools and resources that will help you to know the market better.
  6. Lastly, the forex market is open for all and easy to get into. Both beginners and experienced traders can buy and sell currencies and get high returns.

How does trading work in the forex market? 

As mentioned before, forex means the exchange of currencies of two countries. In the forex market the currencies are always traded in pairs which is known as a currency exchange. The currency pair consists of two parts: the base currency and the quote currency. 

  • base currency: It is the first currency listed in the currency pair. 
  • quote currency: the currency listed later in the pair is the quoted currency.


In the currency mentioned above AUD will be the base currency and USD is the quoted currency. 

The price of each pair is determined on the basis of how much of the quoted currency it costs to buy one unit of the base currency. 

To start trading, a trader places an order of currency pairs or different pairs of currency that they want to swap. Each currency pair has exchange rates associated with them that helps to determine the trade value. An exchange rate is the value of one country’s currency against another country’s currency and is quoted using an acronym which represents the currency. 

Example : USD used for US , CHF used for Switzerland and more

How does one get returns through forex trading?

To trade in the forex market you can get returns by buying something at one price and selling it at a higher price. You can expect returns in either of the following cases: 

  • If you bought a currency pair and its value increases.
  • If you sold a currency pair and its value decreased.

Remember, this is not the sole way to earn returns. There are various factors that affect the currency price and exchange rate. The price of the currency is influenced by various factors like trade flow, politics, economic affairs or any geo-political situations that may affect the demand and supply of the forex.

What are some of the online Forex Trading Strategies that every  trader should know? 

When you register yourself with a forex broker, you learn various trading strategies that fit your way of working. Forex broker reviews have listed a few trading strategies that every trader should be aware of before they start trading.

  1. End of day trading: Under this trading strategy the trader becomes active when it becomes evident that the price of their asset or forex currency is going to ‘settle’ or close. These types of traders work by speculating the price movements based on the price action in comparison to the previous day’s price movement. They make these speculations using the indicators and charts present on their online forex trading platform.
  2. Swing trading strategy: Swing traders as the name suggests swing back and forth in the market with the aim to buy as well as sell at the same time according to the rise and fall of the market. Traders make trades based on a technical approach which involves analyzing the markets as well as individual movements.
  3. Day trading:  Day trading is a trading strategy most followed by traders that have taken trading as a full time profession. A day trader takes advantage of both the local and international markets and therefore, they open and close multiple positions in a day. This reduces the risk of overnight volatility of the market. Day trading provides multi trading opportunities at the same time and is also very flexible.
  4. Position trading: Position trading strategy is when a trader holds a trade position for long periods of time. The time periods can sometimes extend upto months or even years. Under this type of trading the price fluctuations are often ignored to get high returns in the long run.
  5. News trading strategy: As the name implies news trading strategy involves making trade decisions based on the news and market expectations. It is a beneficial trading strategy for experienced traders as it involves analysis and careful interpretation of the news. But, it is important to note that not all news meets the market expectations.

What is CFD trading ? 

CFDs or contract for difference is an agreement between the investor and the CFDs broker that enables you to go long and short on different markets without taking ownership of any physical assets. In CFD trading, instead of directly buying or selling the underlying assets , traders lay their speculations on the change in the price of the commodity. A trader can speculate on a variety of assets including shares, commodities, precious metals, indices and more without actually having to buy it or even open different accounts for different assets.

What is a CFDs Broker ? 

A CFDs broker helps to define the terms of the CFD agreement between the investor and the broker. The broker acts as an intermediary between the two parties and helps in defining the contract terms, margin requirements and any other instruments of trading.

CFD trading includes buying and selling of commodities, stocks and indices, therefore a CFDs broker is equipped with various trading instruments and technical analysis tools that are crucial for trading. 

With so many brokers available in the market it becomes important to invest only with the ones that are reliable and regulated and meet your trading requirements. If you want to test a broker you can always start by opening a demo account or investing in a very small amount with the broker.

How does CFDs trading work?

If we have to explain in simple terms then this is how trading CFD would be : You buy a number of contracts from the forex market if you expect that the price of your asset is going to rise. Similarly, sell the assets if you feel that the price is going to fall. 

But there is more to it,as different online forex trading platforms work differently and have different styles of trading. Let us take a closer look at how to trade CFDs.

  1. Create an account with a forex broker: the step to start any kind of trading is to register yourself with a trusted broker that supports CFDs trading. Once your details have been verified with the broker you need to fund your account with a minimum deposit.
  2. Choose a CFD trading platform: trading platform here refers to web, mobile app, or MetaTrader4. You can choose the platform which suits you best.
  3. Choose the market: CFDs allow you to trade in shares, stocks, indices and more. Therefore you need to choose the market which you want to place your trade in.
  4. Monitor your position: once you have completed all the steps given above it is time to open and monitor a position. Opening a position means to decide whether you want to go long (buy) or short.(sell). You can even choose to do both under CFDs trading. 

Once you have opened your position you can monitor it using the various tools provided by the forex broker to get returns. If you want to settle or close a position, you just need to click on the ‘close’ option on your platform.

Should I consider CFD trading? 

CFDs trading seems to be a reliable and profitable way of trading but it is not recommended for beginners. It is suitable for experienced traders who can speculate the market well and manage the potential risks of the market. CFDs are suitable for all those who are looking for: 

  • Short term investment opportunities.
  • Traders who want to make their own investment decisions.
  • For those who can speculate the market well and
  • Traders who are looking to increase their trading portfolio.

What are the best online trading platforms for beginners? 

According to your research and analysis we have compiled a list of the best forex as well as CFDs brokers for you:

  1. CMC Markets 
  2. IG
  3. E-toro 
  4. NAGA
  5. Avatrade 
  6. SAXO Markets
  7. Pepperstone 
  8. Trading View 
  9. XTB
  10. FP Markets


The bottom line is that whether you are investing in the forex market or CFDs trading you should always trade with a forex broker. These online forex trading platforms help you get high returns and understand the market. There are numerous brokers you can choose from, but you should always read reviews, do your own research and then make a decision. You can visit forex broker reviews to know more about the best online forex trading platforms.

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